FG To Partner CBN, SEC On National Savings Scheme

The Minister of Finance, Budget and National Planning, Zainab Ahmed on Tuesday received the National Savings Scheme Report from the Working Group, with a pledge to collaborate with stakeholders in implementing the recommendations.

The working group was constituted virtually by the minister in May 2020 due to the Covid-19 pandemic.

Its responsibilities were to study the National Savings Strategy Paper and advise the Federal Government on the feasibility of the proposals and/or recommend changes.

It was to also advise on ways and means of mobilising and channeling corporate and individual savings to accelerate domestic capital formation to support entrepreneurs and enterprise development, and consequently achieve the urgent task of diversifying the economy and deepening the capital market among others.

In its report, the committee said while it believed that a national savings scheme for Nigeria as proposed in the strategy document is feasible, it must be a mandatory savings scheme for individuals in the formal sector.

The report stated that only individuals between the ages of 18 – 50 should be mandated to participate. It added that a national corporate savings scheme was not feasible at this time, noting that the savings scheme must be driven by incentives, primarily tax.

Receiving the report, the finance minister commended the working group for the recommendation and said that mobilisation of domestic savings for capital formation and investment remained a critical success factor for harnessing the true growth potential of the Nigerian economy.

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